money-market fund

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Related to money-market fund: Money market mutual funds

money-market fund,

type of mutual fundmutual fund,
in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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 that invests in high-yielding, short-term money-market instruments, such as U.S. government securities, commercial papercommercial paper,
type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good
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, and certificates of deposit. Returns of money-market funds usually parallel the movement of short-term interest rates. Some funds buy only U.S. government securities, such as Treasury bills, while general-purpose funds invest in various types of short-term paper. They became enormously popular with investors in the early 1980s because of their high yields, relative safety, and high liquidity. Investment in money-market funds soared from $20 billion in the late 1970s to over $150 billion in the early 1980s. Much of the growth came at the expense of banks and thrift institutions. With the recession of the late 1980s and early 1990s, interest rates (and, temporarily, the popularity of the funds) dropped. By 2008, some $3.5 trillion was invested in U.S. money-market funds when concerns about real and potential investment losses as a result of the global financial crisis led to sizable withdrawals from the funds; as a result, the Treasury dept. temporarily guaranteed the funds against losses.
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Liquid Performance Money-Market Fund, Primary II Fund and the U.
This is where all accumulated interest, dividends or proceeds from the sales of securities are swept into the selected money-market fund.
Because most money-market funds are part of a larger mutual fund family, an owner could transfer into a stock or bond mutual fund at a later date, when the market changes.
com), is the investment adviser to The Reserve Funds family, which consists of 17 money-market funds and Hallmark Funds which includes seven equity funds.
6 million individuals) currently owning money-market funds, imposing a 4:00 P.
an affiliate of The Reserve Funds, created Reserve Insured Deposits (SM), the financial community's first FDIC-insured money-market account with unlimited transactions, and yield comparable to a money-market fund.
Portfolio-composition reports are reviewed on a weekly basis for all money-market fund ratings and monthly for bond-fund ratings.
Government Money Market Portfolio has received Standard & Poor's highest money-market fund rating.
People were probably figuring they would park the money in money-market funds until they saw which way the economy was heading," Hart says.
The Money Fund Report Average(TM) 7-Day Simple Yield for All Tax-Free and Municipal money-market funds lost 20 basis points to reach 3.
Prior to that he sold Fidelity institutional money-market funds to financial institutions as a Senior Internal Wholesaler and received the 2002 President's Club Leadership Award.
Although money-market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in money-market funds.